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Dynamic Effects of Oil Revenue on Revenue Generation in Nigeria: A Long-Run and Short-Run VECM Analysis

This study examines the dynamic effects of oil revenue on revenue generation in Nigeria using a Vector Error Correction Model (VECM) to capture both long-run and short-run relationships. The Augmented Dickey-Fuller (ADF) unit root test shows that all variables are integrated of order one, I(1). The lag selection criteria indicate an optimal lag of one, and the cointegration test confirms a long-run equilibrium relationship among the variables. The VECM results reveal that oil revenue has a significant long-run effect on revenue generation in Nigeria, with a coefficient of -0.88845 and t-statis…

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    from https://www.irejournals.com/formatedpaper/1719773.pdf